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Markets perk up as traders await Georgia Senate race results: The headlines and your money

Rev. Warnock projected to win Georgia Senate race.

Democratic Senate candidate Reverend Raphael Warnock speaks at a rally on October 24, 2020, in Duluth, Georgia.
Elijah Nouvelage | AFP | Getty Images

Markets recovered some losses Tuesday, while traders awaited Georgia Senate runoff results. Looking ahead, it may be smart to estimate your 2020 tax bill now. Here's how the headlines could affect your money.

Markets perk up

The major indexes closed in positive territory Tuesday, recovering some of their losses from Monday. Each of the three gained less than 1%.

Markets extended their gains Wednesday morning as investors awaited official results from the Georgia Senate runoff. 

Rev. Warnock projected to win Georgia Senate race

NBC News projects that Democrat Reverend Raphael Warnock defeated Republican Kelly Loeffler on Tuesday to secure a Georgia Senate seat. As of Wednesday morning, the race between Jon Ossoff and David Perdue was too close to call.

The outcome of the runoffs will determine control of the Senate and how easily President-elect Joe Biden can implement policies like student loan forgiveness or another coronavirus stimulus package. 

How to head off a surprise tax bill

Tax Day is months away, but you don't want to be surprised by a big bill. To get an idea of what you might owe in 2020 taxes, or what your refund might be, use the IRS Tax Withholding Estimator tool. If you owe, making an estimated tax payment now can help you balance any shortfall and avoid penalties. 

How to pay taxes as a freelancer

Video by David Fang

Words you've heard: estimated tax

Estimated tax is a regular IRS payment based on your earned income. Freelancers and small-business owners, who don't automatically get taxes taken out of their paychecks, typically pay each quarter. 

Although the daily news can have an impact on your wallet, remember to take a long-term outlook when it comes to decisions on spending, saving, and investing.

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